Exercise price and expiration date as the call option

Assignment Help Business Management
Reference no: EM131550772

The current price of a stock is $40 and the annual risk-free rate is 6 percent. A call option with an exercise price of $45 and one year until expiration has a current value of $6.65. What is the value of a put option (to the nearest dollar) written on the stock with the same exercise price and expiration date as the call option?

Reference no: EM131550772

Questions Cloud

What multiple of sigma would be used to set control limits : Consider again the scenario of, and suppose that instead of plotting averages to monitor location, the decision is made to plot medians.
Fallacies in the medias spotlight : Fallacies in the Medias Spotlight - Identify and research a person in the media's spotlight who has used a specific logical fallacy.
Describe effective graphics for visual presentations : Design effective graphics for visual presentations. Prepare reports, project requirements, and other various technical writing genres.
Defend the importance of the topic : Defend the importance of the topic. Give a broad overview of the scope of the work you are reviewing.
Exercise price and expiration date as the call option : What is the value of a put option (to the nearest dollar) written on the stock with the same exercise price and expiration date as the call option?
Explain three things you like about your resume : Discuss the pros and cons for organizations to deal with the disparity. Discuss three things you like about your resume and three things to improve upon.
Compute the given sample means and ranges for the data : Refer to the Hose Skiving case of in the Chap. 1 exercises. The plant works two shifts/day. Five hoses were sampled every two hours from each of three.
What is the firm weighted average cost of capital : A firm has debt of $16,000, and total firm value (E+D) of $40,000, a cost of debt of 5 percent, a cost of equity of 12 percent, and a tax rate of 34 percent.
Discuss which you feel is more important : Discuss how much of a good presentation is the visual aspect and how much is the speaking or presenting aspect. Discuss which you feel is more important.

Reviews

Write a Review

Business Management Questions & Answers

  Eclecticism-practicality and imperialism

In this assignment, you will discuss these 3 values (eclecticism, practicality, and imperialism) and give examples of how the Roman people's actions exhibited that these were their values. Your discourse must indicate that you have an understandin..

  Calculation for air concentration

1. Perform the following calculation for air concentration. Acetone: 42.0 ppm = ____ mg/m3

  Company benefits from economies of scale

A company produces 1,000 soccer balls each day, which it sells to customers for $25 each. All costs associated with production and sales total $12,500; however, if the company were to produce one additional soccer ball per day, total costs would i..

  Explain the actual wages and salaries for the month

Explain The actual wages and salaries for the month was $19,980 and The activity variance for wages and salaries in May would be closest to-

  Find five different personal definitions of success

Go to Google.com and key in "my definition of success" and "cultural differences." Read through the links and find five different personal definitions of success.

  Explain about democratic or laissez-faire style

Would you prefer to work for a leader with an autocratic, democratic or laissez-faire style and Are there circumstances where autocratic leadership might be preferable and more efficient?

  Describe what will and will not work at pegasus

1.Identify and describe 3 process skills that are necessary for the consultant to have to facilitate change. 2.Describe what will and will not work at Pegasus.

  Negative message letterswrite two negative message letters

negative message letterswrite two negative message letters one bad news on any topic and one arguable claim complaint

  What is the external environmental analysis process

What is the external environmental analysis process (four parts)? What does the firm want to learn when using this process? What are the differences between the general enviro..

  Emotion in negotiation

Conduct a light research on the role of emotion in negotiation process, and the effect it has on the outcome of the negotiation. In your essay, try to answer the following the questions:

  Chairman of the board of governors selected

1. How is the Chairman of the Board of Governors selected. 2. What is the makeup and purpose of the Federal Open Market Committee? 3. List and briefly describe the major functions of the Federal Reserve System.

  Explain financial skills and no management skills

You have little financial skills and no management skills. You have a great idea for a new kind of home appliance that meets everyday consumer needs

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd